JioPhone benefits are helping Reliance Jio to increase its user base in the country. The telecom operator has added more active users than Airtel and Vodafone in May this year, which means JioPhone is attracting 2G users from the other two leading telecom operators.
Reliance Jio Active Users In May
India's leading telecom operator Reliance Jio added 2.8 million active users this year in May. Its user share stood at 34.3 percent and active user base to 338 million. On the other hand, Airtel and Vodafone-Idea lost 5.6 million and 7 million users, respectively. The shares of the active user base decreased to 34.6 percent and 25 percent and base to 341 million and 247 million.
"Jio's active subs base growth in May is commendable, and (it) likely grabbed low-end subs from both Bharti and Vi, from the aggressive pricing on the JioPhone offer," ICICI Securities said after analyzing latest telco user data by Telecom Regulatory Authority of India (TRAI).
Airtel Leading Active User Base
It is important to note that Airtel is leading the leadership of the active user base in the country. However, the active user base fell by 11 million to 986 million during the same period due to the second wave of COVID-19. However, ICICI said that Airtel might bounce back and record new customer addition in June this year.
Jefferies though said, "Airtel's active subs decline was driven by Covid led pressures/migration as it lost (nearly) 6 million active users in metros and category A-circles".
This update comes after Airtel discontinued its Rs. 49 plan under its prepaid list. Airtel entry-level plan will cost you more than 60 percent at Rs. 79; however, analysts believe that it will not affect Airtel's base.
For the unaware, TRAI VLR data represents the actual number of customers. According to TRAI's VLR data, Airtel has 98 percent, Vi has 88.8 percent, and Reliance Jio has only 78.4 percent active users share. It is worth noting that Reliance Jio is leading the telecom sector and is expected to add more customers as it is planning to bring its new smartphone in September this year.